Posts Tagged ‘brand equity’

What Are You Trying to Make Happen? And How Will You Measure Progress?

Wednesday, August 11th, 2010

“When you don’t know where you’re going,
any road will get you there.”
- Cheshire Cat, Alice in Wonderland

Violent crime in America declined each year from 1993 to 2004. Then just about the time the iPod became popular in 2005, violent crime began trending upward.  CONCLUSION: iPods cause violent crime. Or at least that was the conclusion of a 2007 report published by The Urban Institute, a research organization based in Washington. (no, really.)

Poor advertising strategies stem from just such logic: “Since one event precedes another, the first event must be the cause of the second.” This fallacy of logic is so common it has a Latin name: Post hoc, ergo, propter hoc, “after this, therefore, because of this,” referring to the mistaken belief that temporal succession implies a causal relation.

Most business owners look around, observe their circumstances and then try to make sense of it all. Their thoughts and plans are guided by what they see. But any scientist will tell you correlation and causation are not the same thing.

Don’t tell me what you see. Tell me what you want to see. “What are you trying to make happen? And how will you measure progress?” When I ask these questions, most business owners stammer, stutter and hedge, then change the subject by asking a question of their own.

I usually ignore that question and ask, “How am I supposed to help you make something happen when you can’t tell me what it is?”

How many of your actions are actually reactions triggered by circumstances? Are we allowing the merely urgent to set aside the truly important?

Do you know what you’re trying to make happen? Can you tell me exactly how you plan to measure progress? The shortest distance from Point A to Point B is always a straight line. The best marketing strategies begin by drawing a straight line from Where We Are Today to Where We’d Like To Be Tomorrow.

No stack of dollars can be your lighthouse. Dollars are merely a byproduct. Money fails as a compass because it can be found in every direction.
Where do you want to be tomorrow?

Good. Now let’s get started.

How good are 9 year olds at creating ads?

Tuesday, December 1st, 2009

6a00d83451688869e2012875c8f9c2970c-500wiAlthough my 18 year old son would balk at being called a child, truth is, he still is in many ways—many of them good.  We were always taught in creative classes to look at life through “child-like” eyes—not “childish,” ‘child-like.”  BIG difference.  And so it is with Perry when we engage in conversations about advertising, reality television, branding, and other work related topics that we discuss often.  He has a real creative streak and of late, I have been “testing” him to see if he can turn his creativity “on and off” based on a particular subject or “product” that I throw out to him.  So I was fascinated when I found this article on the Planning Lab blog.  It’s about how good 9 year olds are at creating ads.  I’m sure they work cheaper, too!  PS– you don’t really need to try to read the ads– they are in Swedish.

The BriefDraw an ad for BMW or Mini. Write a slogan – why buy a BMW/Mini?

Tools and Deadline: A piece of paper, pens and 15 minutes.

Ideas


1. “Buy a BMW/Mini. So much power for real men.”

Account planner comment: power and masculinity becomes the proposition of this ad. A clear call to action. Buy the damn car!

6a00d83451688869e2012875c8f9c2970c-500wi

Ad #1


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Already have an agency relationship?

Tuesday, November 10th, 2009

sanaa, zollverein kubus, 2003-2006
Photo by seier+seier+seier
A lot of people are looking for change right now. If you currently work with an advertising agency, spend just a few moments thinking about the following questions and your responses to them.  We believe that any answer you may have that equals “less than exceeds most expectations” may be an opportunity for a new more productive relationship.  A prospect we’d welcome exploring.

1) Overall how do you rate your agency’s creative team on your business?

2) Does your agency appoint sufficiently qualified creative talent to meet your needs in?

  • strategic creative direction
  • copywriting
  • art direction/design
  • broadcast production
  • print production

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Measuring Your Brand Effectiveness

Saturday, September 5th, 2009
Brand Measurement

Brand Measurement

How do you measure your business success? Where does your company stand, and where would you like to improve? It’s often about more than financial gains. Consider these seven ways to chart your business success.

1. Gross sales
Most companies rely on a single number to assess success: gross revenue from sales of products or services. But this figure can be misleading, particularly if you have high overhead or other expenses that can distort this snapshot of overall business activities. Calculating your gross revenue over a specific time period is a good place to start, but don’t rely on it as your only yardstick.

2. Profits
Imagine two very different businesses. One business with low overhead and high profit margins. The other is a much larger business with higher sales volume but with an overhead and other expenses that eat up much of the profits. Both companies end up with the same net profit. Which is the more appealing business? I argue that it’s the lean and nimble firm, one that drives profits while steering clear of the complexities that so often drain the management of a larger enterprise. Remember, at the end of the day, it’s net profits — not gross dollars — that really matter. (more…)

How is Your Brand Health?

Friday, August 28th, 2009

branding

Contrary to conventional wisdom, there is a key set of fundamental metrics — which can be actively managed — linking the health of a brand to revenue and consumer commitment.

Executives like to talk about strong brands as platforms for sustained growth. In the management literature, the link between brand equity and shareholder value is well accepted. So, why is the responsibility for brand-building not more actively managed in the executive suite?

In our work across sectors, we see companies often failing to “walk the talk” — unable to grasp the link between brand health and revenue commit­ment from customers. They treat brand-building superficially, believing that what matters is making brute-force impressions through large advertising campaigns.

Yet brand health is based on more than image and, through a set of key interrelated measures, can be linked to business performance.

How does the concept of brand health compare to the notion of brand equity?

Brand equity is linked to shareholder value. It is an intangible, long-term measure of a company, which is of little use to executives making investment trade-offs that affect top-line growth. By contrast, brand health is linked to current and future value with consumers and differences in com­petitive position. It is tangible and vital to managing brands and business performance on a forward-looking basis. (more…)